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Empowering cities : good for growth? - Evidence from the People’s Republic of China (anglais)

This paper utilizes a countrywide process of county-to-city upgrading in the1990s to identify whether extending the powers of urban local governments leads to better firm outcomes. The paper hypothesizes that since local leadersin newly promoted cities have an incentive to utilize their new administrative remit to maximize gross domestic product and employment, there should be improvements in economic outcomes. In fact, aggregate firm-level outcomes...
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